Analysis by Energy Workforce SVP Government Affairs & Counsel Tim Tarpley
As the energy crisis in the European Union continues, EU ministers are now warning that the price surge Europe is experiencing means food will be more expensive in the coming months. At a meeting of European farm ministers in Luxembourg on Monday and Tuesday, a consensus agreed that the high price of natural gas is raising the cost of fertilizers. Natural gas is the key feedstock for some of the most common artificial fertilizers, such as urea and ammonium nitrate, elements which sustain European food stocks.
This news comes following a report by the non-partisan Energy Information Administration (EIA) that expects worldwide energy demand to increase by nearly 50% by 2050. The projections show petroleum and other liquid fuels will remain the world’s largest energy source in 2050. However renewables, including wind and solar, will also grow to nearly equal that market share. Also of note in the report is the estimate that global use of petroleum and other liquids will return to pre-pandemic levels by 2023, driven mostly by growth in non-OECD countries energy consumption.
Policymakers in the United States and the developed world can take note of multiple points from this report, including that the world is going to need all forms of energy in order to satisfy the coming demand. Policymakers should encourage the growth of renewables, but not at the sake of traditional oil and gas. Producing oil and gas cleaner and more efficiently will likely have more significant overall carbon output for the world.
Additionally, the EIA report forecasts a decrease in coal demand for OECD countries, but forecasts a demand increase for non-OECD countries. Policymakers should look for ways to incentivize clean, natural gas exports to countries that would otherwise burn coal for power production in order to lower overall worldwide carbon emissions
The United States has already shown this formula to be successful, as the U.S. has dramatically lowered its carbon emissions since 2005 by making this transition. The Council will continue to push for sensible energy policy at the federal level to support our industry and to ensure that the United States and the world have adequate energy supplies for years to come.
For more information on the Council’s advocacy efforts or to get involved, contact SVP Government Affairs & Counsel Tim Tarpley.
Tim Tarpley, SVP Government Affairs & Counsel, analyzes federal policy for the Energy Workforce & Technology Council. Click here to subscribe to the Council’s newsletter, which highlights sector-specific issues, best practices, Council activities and more.